New car prices are rising, making company car schemes and salary sacrifice options increasingly attractive to drivers. These programs, especially salary sacrifice, can be a substantial financial benefit because car payments are taken pre-tax. However, there are trade-offs: you won’t own the vehicle outright, and you’ll be subject to benefit-in-kind (BIK) tax.
Yet, compared to traditional financing or leasing, these schemes often come out cheaper. Last year alone, over a million new cars in the UK were sold through these arrangements, demonstrating the shift in how people acquire vehicles. This demand forces automakers to optimize models for these tax-efficient scenarios. Electric cars, with their minimal BIK rates, are the most advantageous, but plug-in hybrids (PHEVs) offer a viable alternative for those not ready to fully commit to electric.
The Volkswagen Golf GTE exemplifies this trend. It balances sporty performance with tax efficiency, making it an appealing choice for company car drivers. With 268 horsepower, it accelerates to 62 mph in 6.6 seconds—slightly slower than the standard Golf GTI (5.9 seconds) but still respectable. The GTE’s price starts at £40,140, compared to the GTI’s £40,870.
The critical difference isn’t speed, but tax implications. A GTE driver pays around £155 per month in BIK tax, while a GTI driver pays £243—roughly £1,000 more annually. This gap is why the GTE is often the smarter financial choice, despite the GTI being the more engaging driver’s car.
The GTE isn’t just a cheaper GTI; it stands on its own merits. It features a 1.5-liter turbocharged engine paired with an electric motor, delivering 268 combined horsepower. The 19.7kWh battery allows for up to 81 miles of electric range—significantly more than competitors like the Mercedes-Benz A250e, which manages only 44 miles. However, this requires a commitment to both charging and refueling, a challenge for those without home charging access. The GTE’s now-compatible DC fast charging capabilities help mitigate this issue.
Visually, the GTE bridges the gap between the standard Golf and the GTI, offering an aggressive front-end design without the GTI’s lower ride height or dual exhaust pipes. Inside, the cabin features a 12.9-inch touchscreen and sporty seats, though the generous use of gloss black plastic might not appeal to everyone. Boot space is reduced to 273 liters due to the battery, a potential drawback for those needing maximum cargo capacity.
Initial impressions suggest the GTE provides a compelling blend of performance and efficiency. Its steering is responsive, handling is precise, and the chassis offers enough stiffness for enjoyable cornering. The real question is whether this compromise is worth it for car enthusiasts.
Ultimately, the Golf GTE is a pragmatic choice. It delivers the sporty feel of a Golf while minimizing tax burdens, making it a strong contender for salary sacrifice buyers. Whether it’s the right car for you depends on your priorities: if maximizing driving enjoyment is paramount, the GTI remains the superior option. But for those seeking a balanced and financially sensible package, the GTE is a compelling alternative.
